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GERC cuts down cross subsidy surcharge

BS Reporter  |  Mumbai/ Ahmedabad 

In a major respite to open acess consumers, Gujarat Electricity Regulatory Commission (GERC) has reduced the cross subsidy surcharge for open acess from Rs. 1 per unit to Rs. 0.51 paise per unit. The reduction in cross subsidy surcharge is expected to accelerate open acess as envisaged in National Electricty Policy.

Talking to Business Standard, P K Mishra, chairman of GERC said, "We have reduced the cross-subsidy to 50 paise for open access consumers. There are some categories of consumers who have to share cross-subsidy burden which we will reduce further. There are certain social objectives like catering to consumers who lie below the poverty line."

Cross-subsidies result in higher tariffs for some categories of consumers who have a perceived ‘ability to pay’ and according to the National Tariff Policy this has to be eliminated by 2012. The Apellate Tribunal had asked GERC to give a roadmap to reduce cross-subsidy in 2006.

About installing meters in agriculture and farms, Mishra said that while they have installed 30-35 per cent meters, they are aiming to achieve the 100 per cent metering target.

Gujarat State Electricity Corporation Ltd (GSECL), Gujarat Energy Transmission Corporation Ltd, Uttar Gujarat Vij Company Ltd (UGVCL), Madhya Gujarat Vij Company Ltd (MGVCL), Paschim Gujarat Vij Company Ltd (PGVCL) and Dakshin Gujarat Vij Company Ltd (DGVCL) as well as Torrent Power Ltd had filed tariff petitions with the regulator.

First Published: Wed, March 04 2009. 00:12 IST